Fighting Inequalities through development cooperation and stronger partnerships

Below are examples of policy areas where there is growing evidence of positive impact on inequality reduction. These approaches are discussed in greater detail in Volume II of the European Commission’s  Addressing income inequalities through development cooperation. Volume 2, Policy briefs to tackle inequalities – Publications Office of the EU.

Social protection programmes

Social protection reduces both poverty (through policies to protect the most vulnerable populations) and inequality (through redistributive policies). The redistributive dimension of social protection programmes depends largely on the will of governments, particularly the level of public expenditure on social protection, the targeted population groups, the source of financing (types of taxes, contributions) and the size of the transfers etc. Overall, the redistributive impact of social protection is significant in European countries, which have high coverage and high public expenditure on social protection but remains marginal in most partner countries. The prospect of setting up universal coverage based on the principle of solidarity-based financing could thus be a lever to overcome these shortcomings and encourage solidarity. 

Health programmes

Equitable access to health is both a human right and a powerful equalizer. Health inequalities—driven by income, geography, gender, disability, or legal status—exacerbate and perpetuate broader social inequalities. Persons with disabilities often face systemic barriers to health care, including physical inaccessibility, stigma, lack of accessible information, and unaffordable additional health costs. As a result, they are more likely to miss out on preventive care, experience poorer health outcomes, and die prematurely—not because of their disability, but due to limited access to services. Moreover, insufficient habilitation and rehabilitation services often lead to worsening conditions or avoidable disabilities. Strengthening universal health coverage, reducing out-of-pocket expenses, and investing in inclusive primary health care systems are essential to ensure health does not become a vector of exclusion. The EU contributes to international cooperation to address health equity as a driver of social cohesion, notably through initiatives like Global Gateway’s health pillar and the WHO’s Universal Health Coverage Partnership. 

Climate change and Just Transition

Climate change, Just Transition and Inequality are deeply intertwined on several levels:

-  The richest individuals contribute the most to pollution, while the impacts of climate change are felt most acutely by the most vulnerable populations, who are facing higher risks of health impacts, food insecurity, and death rates from extreme weather events. The top 1% is responsible for approximately 16% of global consumption emissions, and the richest 10% account for half of all emissions. 

- Climate mitigation policies can unintentionally increase inequality: For example, carbon pricing (e.g., carbon taxes) while effective in reducing emissions, can have regressive effects by raising the cost of energy, transport, and food, which represent a larger share of expenditure for poorer households. Without targeted compensation mechanisms (like cash transfers or energy subsidies), these policies can exacerbate existing social and economic inequalities. 

- Inequality-reduction policies can affect climate outcomes positively or negatively: Some redistributive policies intended to support vulnerable populations, such as fossil fuel subsidies for low-income households, may reduce short-term poverty but also incentivize carbon-intensive energy consumption, undermining climate goals. On the other hand, progressive public investment in green jobs, universal access to clean energy, and adaptive social protection can reduce both emissions and inequality. 

A Just Transition approach seeks to break this cycle by embedding principles of equity and social justice into climate action. It emphasizes that the shift to a low-carbon economy must be fair, inclusive, and responsive to the needs of those most affected by both climate change and structural inequality.

Key elements of a Just Transition include:

• Social dialogue and participation: involving workers, communities, and marginalized groups in planning climate strategies;
• Income protection and job creation: providing reskilling programs, income support, and green job opportunities for those displaced by the green transition;
• Territorial fairness: addressing place-based disparities, particularly in fossil fuel-dependent regions or urban slums;
• International solidarity: mobilizing climate finance and technology transfer to support low- and middle-income countries in making equitable transitions.

Digital

Investing in digital presents both opportunities and risks for inequality reduction. Digitalisation can enhance access to services, education, employment, and political participation. However, without deliberate efforts to promote inclusion, digitalisation risks reinforcing and deepening existing inequalities, especially in low- and middle-income partner countries. In this sense, digital divides remain stark across income groups, rural–urban areas, gender, and age, limiting equitable access to digital tools and services. For instance, in Sub-Saharan Africa, only 25% of the population used the internet in 2022, with even lower rates in rural and low-income communities. Women and girls are 19% less likely than men to use mobile internet, due to affordability gaps, lower digital literacy, and social norms. These divides intersect with other structural inequalities, further excluding youth, persons with disabilities, and displaced populations from the benefits of digital development. 

Therefore, digital technologies must be designed and deployed with an explicit inequality lens. For example, digital public infrastructure (e.g. ID systems, social registries, payment platforms) must be accessible, inclusive, and interoperable to support fair and effective service delivery. At the same time, investments in digital skills, inclusive innovation, and affordable connectivity are essential to ensure that marginalised populations can participate meaningfully in digital economies.

Advancing an inclusive and sustainable future requires ensuring that both digitalisation strategies and Just Transition policies are fully aligned with inequality-reduction goals. This means going beyond infrastructure development to include rights-based governance, safeguards, and accountability mechanisms that prioritise the needs of the most marginalised. Supporting partner countries in building inclusive digital systems (particularly in sectors like education, health, and social protection) is essential to ensure that no one is left behind in the digital transition. 

Gender inequalities

Gender inequalities remain deeply entrenched and multidimensional, affecting women and girls across all sectors of life. Notable progress has been made in narrowing educational gaps (with global enrolment and completion rates for girls improving significantly over the past two decades). Ye, in low-income countries, girls still face significant barriers to completing secondary education, with lower secondary completion rates at 38% for girls compared to 43% for boys, and upper secondary completion at 21% for young women versus 26% for young men. These disparities are particularly pronounced in regions such as South Asia, the Middle East and North Africa, and sub-Saharan Africa.

Yet education is only one dimension of the broader gender inequality landscape. Women continue to experience lower labour force participation, wage gaps, and overrepresentation in informal and unpaid care work, all of which reduce their economic autonomy and resilience. In many contexts, restrictive social norms, limited access to sexual and reproductive health services, discriminatory laws, and underrepresentation in political decision-making further entrench inequality and exclusion. Development cooperation strategies that seek to address gender inequality must promote transformative, rights-based approaches (including changes to institutions, norms, and systems of power) while supporting intersectional strategies that address overlapping forms of discrimination faced by women and girls based on ethnicity, socio-economic status, disability, or geography. These priorities are well articulated in the EU Gender Equality Policy Brief in  the aforementioned Addressing income inequalities through development cooperation. Volume 2, Policy briefs to tackle inequalities – Publications Office of the EU., which highlights the importance of tackling both structural and contextual barriers to achieve lasting and inclusive gender equality in partner countries.

People with disabilities

Persons with disabilities face significant and often compounding barriers to education, employment, and social participation, reinforcing structural inequalities. Globally, an estimated 1.6 billion people—roughly 1 in 6—live with a disability. In many developing countries, disability is strongly associated with higher multidimensional poverty, lower educational attainment, reduced access to employment, and increased out-of-pocket health expenditures. While countries like Brazil report that only 25.6% of persons with disabilities have completed at least secondary education (compared to 57.3% among those without disabilities), the gap is likely even wider in lower-income contexts with weaker education systems and fewer inclusive policies. Among persons with disabilities, those aged 40 and above and those with multiple disabilities are more likely to be multidimensionally poor. Women and girls with disabilities often face compounded discrimination based on both gender and disability, and individuals in informal urban settlements or from marginalized ethnic groups frequently experience additional layers of exclusion from essential services and opportunities. Access to assistive technologies remains critically limited: in some low- and middle-income countries, only 5–10% of people who need devices such as eyeglasses, hearing aids, or wheelchairs have access to them. 

Education, Youth and Intergenerational Justice

Education remains one of the most powerful tools to break the cycle of poverty and reduce inequalities across generations. Yet, despite global progress in expanding access, deep disparities persist in terms of education quality, completion, and transition to employment especially for disadvantaged youth. In many low- and middle-income countries, public education systems are underfunded, unevenly distributed, and poorly equipped to meet the needs of children and adolescents from rural areas, conflict zones, ethnic minorities, and low-income families. Marginalized groups (including girls, children with disabilities, and displaced youth) often face intersecting barriers to enrolment, retention, and learning outcomes.

Globally, more than 244 million children and youth remain out of school, and millions more attend school without acquiring basic literacy or numeracy skills. Youth from lower socioeconomic backgrounds are significantly less likely to complete upper secondary education or pursue tertiary studies. This gap perpetuates inequality in the labour market, as those with limited education face higher rates of unemployment, informality, and vulnerability. In low-income countries, only 28% of youth are engaged in wage or salaried employment, with the vast majority working in informal, low-paid, or precarious jobs. The share of youth who are Not in Education, Employment, or Training (NEET) remains alarmingly high: 23% globally, rising to 35% in Southern Asia and nearly 40% in Northern Africa. Gender disparities are also stark: young women are twice as likely as young men to be NEET in many regions, due to social norms, care responsibilities, and limited access to training or jobs.

Moreover, many education systems are ill-prepared to equip young people with the digital, ecological, and socio-emotional skills needed for the digital and green transitions. Investments in inclusive, quality, and future-oriented education (combined with targeted support for school-to-work transitions, apprenticeships, and youth entrepreneurship) are essential to ensure that all young people can thrive and contribute meaningfully to society. 

A widening intergenerational gap in wealth, opportunity, and voice has become more visible. The anticipated intergenerational wealth transfer is poised to exacerbate existing inequalities. In the United States alone, over $100 trillion is expected to be inherited by 2045, with the wealthiest 10% of households projected to receive the majority. This concentration of wealth threatens to entrench economic disparities and limit social mobility for those without affluent backgrounds. 

Finally, youth are underrepresented in political and decision-making arenas. Despite making up a significant share of the population (often over 50% in Sub-Saharan Africa and parts of the Middle East and South Asia) young people rarely hold positions of formal political power or are meaningfully included in policy dialogue. Legal age restrictions, limited access to civic spaces, and entrenched gerontocratic political systems often prevent youth from participating in decisions that affect their futures. This lack of representation contributes to a diminished trust in public institutions among young people. Ensuring access to quality education, decent jobs, and participation in decision-making for youth is therefore central to inclusive development agendas.

Transport and Mobility

Inclusive transport and mobility systems are essential for reducing inequalities. Poor and marginalised populations (especially those in rural or peri-urban areas) often face significant mobility constraints that limit their access to jobs, education, healthcare, and markets. Inadequate or unaffordable transport reinforces spatial inequality and social exclusion, particularly for women, persons with disabilities, and informal workers. Transport infrastructure investments under the Global Gateway must therefore be designed and implemented with explicit equity and accessibility goals. This includes:

• Targeting underserved areas, including secondary cities and rural regions;
• Ensuring affordability and safety of public transport for vulnerable users;
• Incorporating universal design standards to make mobility inclusive for people with disabilities;
• Promoting low-emission and climate-resilient transport solutions, aligned with Just Transition goals.

By adopting an inequality-sensitive approach to transport and mobility, development cooperation can unlock broader social and economic benefits improving livelihoods, facilitating service delivery, and enabling fuller participation in economic and civic life.

Other evidence-based policies that have demonstrated a positive impact on reducing inequalities include: 

• Tax and Debt Justice: The international tax system is under increasing scrutiny, with growing momentum for progressive taxation, tackling illicit financial flows, and regulating tax havens. Proposals like a net wealth tax and minimum corporate tax rates are gaining traction (e.g. OECD/G20 BEPS framework). Importantly, the outcome document of the Fourth International Conference on Financing for Development (FfD4) includes a historic political consensus to “tax the wealthiest”, marking a significant step forward in global fiscal justice. In addition, many developing countries are facing unsustainable debt levels, limiting their capacity to invest in inequality-reducing policies. Discussions on debt restructuring, climate-related debt swaps, and SDR reallocation (Special Drawing Rights) are increasingly relevant.
• Migration and Inequality: Migration is both a cause and consequence of inequality. As migration patterns shift due to conflict, climate, or economic opportunity, there is a growing need to address inequalities experienced by migrants, including access to services, legal protections, and decent work.
• Urban Development and Land Policies: Urbanisation continues to accelerate in many partner countries, yet the benefits of urban growth are often unequally distributed. Spatial inequalities within cities (driven by poor planning, inadequate infrastructure, and speculative land markets) lead to the marginalisation of informal settlements and low-income communities. Evidence shows that inequality-sensitive urban policies, including equitable access to housing, public transport, and basic services, can significantly reduce urban poverty and exclusion. Similarly, land tenure reforms (particularly those that strengthen women’s and indigenous peoples’ rights to land) are essential for promoting economic empowerment and resilience. Integrated urban planning that considers accessibility, affordability, and climate resilience is key to ensuring that cities become engines of inclusive and sustainable development.

Tackling inequality today requires a broader, more integrated agenda than ever before. Core priorities like social protection, health, gender equality, and just climate transitions remain essential, but must now be complemented by action on emerging challenges—such as tax justice, digital inequality, debt burdens, and youth exclusion. In a context of shrinking aid budgets and geopolitical tensions, sustained international cooperation is vital. Reducing inequality is not only a matter of fairness—it is central to building more resilient, stable, and inclusive societies. 

To respond to growing inequalities, the European Union launched the Global Gateway strategy in 2021, a comprehensive blueprint for inclusive global partnerships, offering “smart, clean and secure links in digital, energy, and transport sectors, and reinforcing health, education and research systems”. The Global Gateway is the EU’s contribution to narrowing the global investment gap worldwide. It is in line with the commitment of the G7 leaders from June 2021 to launch a values-driven, high-standard and transparent infrastructure partnership to meet global infrastructure development needs. The Global Gateway is also fully aligned with the UN’s Agenda 2030 and its Sustainable Development Goals, as well as the Paris Agreement. With a Team Europe commitment to mobilise up to €300 billion by 2027, Global Gateway seeks to forge sustainable, trusted connections that deliver lasting benefits for people and the planet. While heavily centred on infrastructure, the initiative’s added value lies in its 360-degree approach, combining investments in hard infrastructure with enabling environments, values-based partnerships, and strong social and environmental safeguards. This integrated model distinguishes the EU’s offer and enables us to support the development of inclusive and sustainable markets, while ensuring concrete, measurable benefits for those most at risk of being left behind.

How does Global Gateway address and impact inequality? 

• Global Gateway builds international partnerships through a 360-degree approach that responds to partner countries’ needs and our shared interests. Global Gateway is about investing in sustainable connectivity in key areas like climate and energy, digital, transport, health, education, and research. But it is also about strengthening the broader enabling environment, e.g., investments in regulatory frameworks, skills training, technology transfer, or sustainable finance (with a focus on SMEs).
• Global Gateway is a critical lever to boost private investments in countries that often have limited access to private-sector financing. It also seeks to improve local economies and create decent jobs, which in turn decrease inequality.
• Through our Team Europe approach, we combine the resources of the EU, Member States, their Development Finance Institutions, and the private sector. Civil society has a key role to play both in implementation and monitoring. Together, we can have the kind of impact necessary to fight systemic inequality.
• We are actively monitoring our work to ensure that the most vulnerable populations benefit from our projects and that we are lowering inequalities. We introduced the first Inequality Marker to help us better understand, track, and benchmark our impact across all sectors on inequalities. This is being applied to all our actions, including those that are part of Global Gateway under EFSD+- starting with blending operations and to be extended to guarantees.